Bank of Japan surprises analysts with yield curve tweak
But governor Kuroda says the move is not a rate hike nor a step to end easy policy
Japan’s central bank made a surprise tweak to its longstanding monetary easing programme, with analysts seeing the move as a step towards future policy normalisation.
After its regular two-day policy meeting, the Bank of Japan said it would allow yields on 10-year Japanese government bonds to move 50 basis points either side of its 0% target, wider than the previous 25bp band.
The change sent shockwaves through markets. The yen strengthened from 137 to 133 against the US dollar within minutes
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